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Al-Ahram Weekly
7 hours ago
- Business
- Al-Ahram Weekly
Egypt government committed to economic reform - Economy - Al-Ahram Weekly
Egypt's economy expanded by 4.8 per cent in the third quarter of fiscal year 2024-25, up from 4.2 per cent in the first nine months and 2.4 per cent at the start of the fiscal year, Finance Minister Ahmed Kouchouk told a seminar on 'Fiscal Policy Between Financing Challenges and Growth Aspirations' organised by the Egypt-Canada Business Council and the Egyptian Business Council for International Cooperation on Monday. Last week, Kouchouk told participants during the opening session of the 'Egypt Day' at the London Stock Exchange in the UK that the country's primary surplus had reached 3.6 per cent in fiscal year 2024-25, the highest ever recorded, with a 35 per cent growth in tax revenues. He said the figures were the outcome of Egypt's solid fiscal performance. Delivering a presentation about the country's macroeconomic outlook, he said that taxes had not been increased or new ones imposed. The increased revenue was possible because of facilitations, broadening the tax base, digitisation, and building trust, the minister said. Given the improved revenues, Kouchouk said that next year he hopes to triple allocations supporting the economy, double export funding, and launch more initiatives supporting the industrial and tourism sectors and entrepreneurship. He said this was possible despite the headwinds that had affected Suez Canal revenues and an oil sector that needed support to rebound. He said he was confident that the country would meet its key economic reform targets and have a delayed review of its $8 billion International Monetary Fund (IMF) programme completed by September or October, according to Reuters. According to the news agency, Kouchouk said he expected the government to complete three to four privatisations across various sectors before the end of the current fiscal year 2025-26. He said the government had shared a medium-term plan for these with the IMF and international institutions. The fifth review of Egypt's $8 billion Extended Fund Facility programme by the IMF has been delayed due to slow progress on reforms such as divesting state assets and reducing the footprint of the government in the economy. This meant that Egypt would not receive the fifth tranche of $1.2 billion that was set to be release by the IMF following the review. However, once Egypt passes the combined fifth and sixth review scheduled for this autumn, it should receive $2.5 billion. Prime Minister Mustafa Madbouli had previously referred to the regional and global turmoil and its effects on the investment climate and the movement of capital in explaining the delays, indicating that these conditions had not been favourable to the sale of stakes in state-owned companies. At a recent press conference, he affirmed that selling stakes in state-owned companies was important for the government. He said that the IMF had not asked the state to offer stakes in specific sectors or companies, affirming that the decision was 100 per cent Egyptian, and that the delays were due to the state's target of achieving a specific return from the offering of the assets. If this return is not achieved, the offering is postponed to a more suitable time, he explained. In November 2024, Madbouli said that the government was planning to offer stakes in 10 state-owned companies in 2025, including four military-owned companies and banks. The list also included companies in the pharmaceuticals sector. Moreover, the government said it would privatise the management of Egypt's airports at a recent press conference, with Madbouli explaining that this involves offering the management and operation of the airports to specialised global companies. He said that the return generated by these companies in managing the airports would represent a higher value than what would be achieved through state management. In the meantime, the IMF released its report on the fourth review of Egypt's reform programme that took place earlier this year. According to the IMF report, the government has made progress in stabilising the economy. However, it said that going forward 'it is critical not only to consolidate these short-term gains but also accelerate the implementation of structural reforms.' The fourth review gives a glimmer of hope, said Hesham Shafick, assistant professor of strategic management at the German International University (GIU) in Cairo, citing it as acknowledging that inflation had cooled to around 24 per cent compared to a peak of 38 per cent and that GDP growth is recovering and reserves have accumulated quicker than expected. Quarterly real GDP growth picked up to 3.5 per cent in the first quarter of fiscal year 2024-25 compared to 2.7 per cent the same time the year before. Net international reserves reached $48.7 billion at the end of June 2025, according to the Central Bank of Egypt (CBE). However, Shafick said that some of the challenges mentioned by the report remain the same as those mentioned by the IMF since day one of the agreement, namely that the government needs to take a back seat in the economy and allow the private sector more room to operate. The fourth review report said that 'deeper reforms are required to unlock Egypt's growth potential, sustainably reduce its vulnerabilities, and meet its economic and social needs.' Reducing the role of the public sector in the economy is an urgent priority, the report stressed. It listed essential reforms such as developing a financial system that supports private-sector development, strengthening the competitiveness of the economy, and levelling the playing field and reducing red tape. According to Shafick, the economy continues to depend on piecemeal solutions such as the sale of assets or loans, while real recovery requires shrinking the state's role in non-strategic sectors and encouraging private-sector investment inflow in productive sectors. He said that while the government appears to be serious about clearing the way for private-sector activity, it needs to take steps on the ground such as issuing new legislation that will create an ecosystem that would attract the private sector. The private sector wants to make sure that it will be competing on equal terms with other players in the market, Shafick said. Economist Moataz Yeken said in a post on his Linkedin page that Egypt's macroeconomic indicators may be stabilising on the surface, thanks to hefty foreign currency inflows from Gulf allies, proceeds from the Ras Al-Hekma deal, and multilateral support, but the real economy remains constrained. He also noted that progress on the State Ownership Policy and public-asset divestment has been limited. 'While Egypt has demonstrated resilience in the face of external shocks, from Covid-19 to war-induced commodity disruptions, the model of stabilisation through foreign borrowing and asset monetisation is not a substitute for structural reform. It buys time, not sustainability,' Yeken wrote. Nonetheless, the IMF's continued support is not in doubt. According to Shafick, Egypt's geopolitical status will shield it against any fallout from the IMF's decision to delay the fifth review and the accompanying disbursement of funds, especially if it moves faster with reforms. Earlier this month, the US ratings agency Moody's kept Egypt's outlook positive and affirmed its Caa1 rating. The agency said its outlook 'reflects the prospect for an easing of Egypt's debt service burden… and increasing monetary policy credibility and effectiveness.' Yeken said that 'the IMF's continued support is not in question. Egypt remains geopolitically strategic.' However, he stressed that 'Egypt's own long-term stability hinges on a genuine pivot away from state-led commercial expansion and toward a rules-based, competitive market economy.' Attracting foreign direct investments (FDI) and selling stakes in state-owned companies is crucial not only for the growth of the economy but also to bring in revenue to bridge Egypt's financing gap. In the fourth review report, the IMF estimated the financing gap at $8.2 billion in 2025-26. To help bridge that gap, bond issuances are in order. Kouchouk said that there are plans to issue up to $4 billion of various types of bonds. Last month, $1 billion worth of sovereign sukuk (Islamic bonds) was issued. Though these issuances have raised concerns about growing external debt, the government has said it is part of a strategy to extend the maturity of its debt. The IMF puts Egypt's external debt at reaching around $180 billion in the current fiscal year, with external debt servicing amounting to $46.6 billion. During his meeting in London last week, the minister said the government was implementing an integrated strategy to improve public debt indicators and maintain investor confidence. During the seminar on Monday, he said the government had already begun reducing the country's debt-to-GDP ratio, targeting overall improvements in all economic indicators over the coming period. He added that the government remains committed to reducing external debt-servicing obligations for all budget entities by $1 to $2 billion annually. * A version of this article appears in print in the 24 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Daily News Egypt
17-07-2025
- Business
- Daily News Egypt
Egypt's FRA chief vows to reform business environment to boost investor confidence
Egypt's Financial Regulatory Authority (FRA) is serious about reforming the business environment in the non-banking financial sector to boost the confidence of local and foreign investors, its chairperson Mohamed Farid said on Monday. Speaking at the 'Egypt Day' event at the London Stock Exchange, Farid said that the credibility of the investment climate begins with local investors' confidence in policies and the business environment. Farid was part of an official delegation on a promotional tour organised by the Egyptian-British Business Association. In his remarks, he outlined the FRA's efforts to contribute to Egypt's 'Vision 2030' by unleashing private sector growth. He highlighted the authority's focus on digital transformation as a key driver for the non-banking financial sector's role in the national economy. This includes developing regulations for fintech, enhancing market protection and innovation, and updating accounting standards to improve transparency. Other key initiatives mentioned were the launch of Africa's first regulated voluntary carbon market in Egypt and the drafting of a new unified insurance law. Farid said the FRA's main objectives are market integrity and stability, protecting customers' rights, digitalisation, and simplifying procedures. He added that the authority's goals support the government's efforts to increase private sector participation in achieving economic growth. The FRA chairperson pointed to the success of recent digital initiatives, noting that new regulations for identity verification and digital contracts have paved the way for a surge in new accounts. He said that over 200,000 new accounts were registered in gold investment funds within one year, with investments exceeding 2 billion Egyptian pounds. Farid also discussed the FRA's work on developing legislative frameworks to stimulate investment, including a flexible model for participatory financing and new rules for digital investment platforms in real estate investment funds. He affirmed that market stability and investor confidence remain top priorities. He noted that the FRA had recently overseen a comprehensive update to Egyptian accounting standards, introducing fair value models for fixed and intangible assets and real estate investments. This allows companies to more accurately reflect their financial position, supporting sound financing and investment decisions. Farid also highlighted the FRA's support for entrepreneurship and innovation, including developing new valuation standards for startups to help them access the necessary financing for growth.
See - Sada Elbalad
16-07-2025
- Business
- See - Sada Elbalad
Finance Min. Rings Opening Bell at London Stock Exchange for "Egypt Day" Celebration
Taarek Refaat Finance Minister Ahmed Kouchouk rang the opening bell at the London Stock Exchange today, marking the launch of "Egypt Day" and reaffirming the country's dedication to fostering deeper economic ties with both local and international investors. During the ceremony, Kouchouk, representing the Egyptian government, made a lighthearted remark: 'The markets never sleep, and neither do finance ministers!' signaling both the vibrancy and the constant activity of global markets, particularly in the ever-evolving financial world. In his address, Kouchouk emphasized that Egypt, through the prestigious London Stock Exchange, is signaling a new era of 'trust, partnership, and certainty' with investors, marking the beginning of a series of engagements aimed at forging stronger relationships with the international business community. The Finance Minister reiterated Egypt's commitment to improving the investment climate, stating that the government is dedicated to maintaining open and productive dialogue with the business sector to explore new investment opportunities in the country. "We are committed to fostering a partnership where mutual growth and prosperity are at the forefront," Kouchouk said. Kouchouk assured attendees that the investment environment in Egypt is steadily improving, highlighting that the private sector is increasingly driving the country's economic activity. He also pointed to Egypt's strong economic performance in the past year, which saw a notable surplus and significant growth in exports. 'We have made remarkable strides in recent years, with the Egyptian economy achieving substantial growth,' Kouchouk noted, referencing the impressive fiscal surplus and improved growth metrics that have positioned Egypt as an emerging investment hub in the region. Turning to international investors, Kouchouk stated, 'Together, we begin this day with a promising horizon to build more stimulating international partnerships for Egypt's economy.' His remarks were aimed at encouraging deeper collaboration with foreign investors to boost Egypt's market presence and attract further international capital. The ringing of the opening bell is not just a ceremonial gesture but a statement of Egypt's evolving economic landscape. By marking "Egypt Day" at such a prestigious global financial hub, the government seeks to showcase the opportunities available in Egypt's burgeoning sectors, including energy, infrastructure, and technology. This gesture comes at a time when Egypt is focused on enhancing its international standing as a gateway for investment, positioning itself as a competitive player in the global economy. By addressing both local and international investors, Kouchouk aims to strengthen Egypt's economic narrative and further its role as a leader in the MENA region. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Daily News Egypt
16-07-2025
- Business
- Daily News Egypt
At London ‘Egypt Day', Finance Minister outlines pro-investment policies
Egypt is seeking a deeper partnership with global financial institutions and investors to build a more competitive economy, its finance minister said on Monday during an 'Egypt Day' event at the London Stock Exchange. Ahmed Kouchouk stated that Egypt is opening its doors to all with promising and diverse economic opportunities. 'We renew our commitment to transparency and our presence in the most important international financial markets, and to working together to improve policies and seek new opportunities to attract more investment flows,' Kouchouk said in his opening address. He described the event as a strong opportunity for dialogue and building long-term strategic partnerships based on trust and clarity. 'What we present today are not just visions and ideas, but an integrated policy framework that seeks to remove obstacles to private sector growth and achieve greater openness to global innovation and investment,' the minister added. Kouchouk expressed his appreciation for the London Stock Exchange's long-standing partnership, which he said reflects the spirit of cooperation between Egypt and British financial institutions. The minister outlined that Egypt is in a new phase of economic reform focused on fiscal sustainability, empowering the private sector, and boosting industrial and export activities. 'The government is working in full coordination between its institutions to improve the investment climate and enhance confidence in the national economy,' he said. 'The economic ministerial group is a very cohesive team, working with a more comprehensive, consistent, and integrated vision towards a clear goal: for our economy to be more resilient, competitive, attractive to investors, responsive to the future, and forward-looking in development and innovation.'
Al-Ahram Weekly
16-07-2025
- Business
- Al-Ahram Weekly
Egypt's finance minister rings LSE bell, launches Egypt Day - Markets & Companies
In a symbolic gesture of Egypt's deepening ties with global markets, Minister of Finance Ahmed Kouchouk rang the opening bell of the London Stock Exchange (LSE) on Wednesday to inaugurate 'Egypt Day' — a high-profile investor event spotlighting the country's economic reform efforts and investment potential. Addressing an audience of international business and financial leaders, Kouchouk quipped, 'Markets don't sleep… and neither do finance ministers,' underscoring the urgency and determination behind Egypt's reform agenda. The minister unveiled a new strategic framework titled Trust, Partnership, and Certainty, aimed at deepening cooperation with both domestic and international investors. He stressed the importance of open dialogue and direct engagement with the global business community to unlock fresh opportunities in the Egyptian market. "Through the London Stock Exchange — a global symbol of financial excellence — Egypt reaffirms its dedication to building long-term, transparent, and mutually beneficial partnerships," Kouchouk said. Highlighting recent economic performance, he pointed to strong fiscal indicators over the past year, including a substantial primary budget surplus, accelerated GDP growth, and increased exports, gains attributed to structural reforms and an improving investment climate. Kouchouk also underscored the private sector's growing leadership in driving economic activity, supported by greater policy stability and ongoing regulatory improvements aimed at enhancing the business environment. Closing his remarks, Kouchouk said: 'Together, we begin our day with promising prospects for building more dynamic and growth-oriented international partnerships that will further energize the Egyptian economy.' The event marks a significant milestone in Egypt's ongoing effort to establish itself as a premier destination for global capital and a leading player among emerging markets. Follow us on: Facebook Instagram Whatsapp Short link:
